As soon as the changing business comes into existence, we are seeing a huge change in the way products are being transacted around the world. To reduce errors when filing GST returns, business persons, taxpayers, accountants now require a general understanding of the goods being traded. For this, the government and the businessman adopt many types of procedures.
One of these is the introduction of HSN (Harmonized System of Nomenclature) codes.
The other benefit is-
HSN in India
India is a member of the World Customs Organization (WCO) since 1971 and it has already been using the HSN since 1986. It was originally using 6-digit HSN codes to classify commodities for Customs and Central Excise.
HSN Code Structure
Later, another amendment is made by Customs and Central Excise. They added two more digits to make the code more accurate, resulting in an 8-digit classification.
What is HSN code under GST?
The HSN system is not new for India as it has already been using since 1986 in the Central Excise and Customs regime. Now, India has its very own Goods & Services Tax (GST). The GST applies to all goods and services as indirect taxes and reduces the burden on the end consumer. It is now structured with HSN. The GST HSN is a much more detailed classification. Under GST, the Indian manufacturers shall be required to follow a 3-tiered structure of HSN.
In this article, we will learn how to create a 6-digit HSN code in RetailGraph.
(Without updation of purchase entry )
For detailed visualization, kindly watch our video tutorial ( https://youtu.be/Zs04XItceok ) . If you want more details, please contact to our team.
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